Electronic payment solutions company Spenda Ltd (ASX:SPX, OTC:CROTF) has entered into a binding memorandum of understanding (MoU) with eBev Pty Ltd to provide integrated payments solutions across the eBev marketplace.
eBev is a software provider with a platform that enables licensed premises to order alcoholic beverages from eBev’s approved catalogue. Its buyers consist of more than 2,500 licensed premises who regularly purchase through its platform.
The MoU encapsulates the entire supply chain from the distributor, to licensed premises and through to the end-consumer.
"Further validation"
Spenda managing director Adrian Floate said: “Expanding this partnership with eBev reflects further market validation of our unique payments solution across distributed networks in different industry verticals.
"Our solutions are well suited to the hospitality industry which has an integrated network of buyers and sellers through the supply chain.
“eBev has done a fantastic job of growing its merchant base and ordering volumes. This partnership with eBev, in addition to recent agreements with Carpet Court, AgriChain and Capricorn demonstrates our ability to keep layering recurring revenue streams.”
eBev payment integration
Spenda will integrate its pay-statement-by-link (PSBL) and accounts payable (AP) payments solutions into the eBev platform across the hospitality supply chain.
eBev and Spenda will supply licensed premises with merchant services that enable them to take B2C payments via both physical and virtual terminals as well as e-invoicing services and payment services.
Subject to credit approval, licensed premises will also have access to card-blended finance (trade) accounts using Spenda’s lending and card-blended finance, enabling them to purchase goods from the eBev platform, via the Spenda PSBL product.
Via its partner AirPlus, Spenda will provide extended terms of trade to eBev customers, by providing pre-approved virtual Mastercards (card-blended trade finance).
This card-blended trade finance is complementary to the company’s current debt funding structure and constitutes a new lending service embedded on the eBev platform that doesn’t require first loss capital, enabling Spenda to scale rapidly into larger facilities, cross-border opportunities and the delivery of international services.
The roll-out
The integrated payments solutions will be rolled out in two commercial phases.
The first phase of the commercial rollout of the integrated B2C payments solutions will involve an initial 100 clients over three months. This first phase is expected to start in early 2024 and take three months. This is expected to generate around $800,000 in annualised revenue.
In addition, card blended finance facilities of up to $50,000 will be rolled out to up to 100 customers with additional revenue streams yet to be determined.
In the second phase of the rollout, commencing in the fourth quarter of FY24, the service will be scaled and more broadly offered to all stakeholders in the eBev marketplace.
Upon completion of the full commercial rollout, Spenda expects to generate a blended net revenue margin of 2-4% across the eBev ecosystem on transactions that utilise Spenda’s payments solutions.
Spenda: a critical partner
eBev CEO Ian Harris said: “In these more challenging economic difficult times, businesses look for ways to save time, money and manage their cashflow. This partnership with Spenda enables eBev to continue evolving our offering to the eBev marketplace.
“Spenda has been a critical partner in our growth over the last two years and building a deeper partnership will be key to delivering ongoing value to our customers.”